Representative Town Meeting Budget Hearing and Special Meeting Day 4 FINAL (linked)

FIFTEEN ROPE FERRY ROAD
WATERFORD, CT 06385-2886
PHONE: 860-442-0553
www.waterfordct.org
January 27, 2025
TO: BOARD OF SELECTMEN
RE: FIVE-YEAR CAPITAL IMPROVEMENT PLAN RECOMMENDATIONS
FY 2026-2030 |
In FY24, the Town of Waterford closed 18 capital projects that were approved and funded. The
town continues to focus on completing past projects currently in FY25 and remains committed to’
funding necessary projects moving forward. These outstanding approved capital projects,
contractual obligations, unanticipated supply chain costs and increases, and insurance cost hikes
make it necessary for me to continue a “partial moratorium” on any new capital projects that would
require an increase in our tax rate. My capital plan recommendations span three periods, each.
detailed below:
1. Current Approved Capital Projects
2. FY26 Capital Budget Requests
3. Projected Capital Requests Outside the Budget Cycle
Current Approved Projects
The rationale behind focusing on current approved projects is to continue my commitment to
completing and closing past capital projects, which were approved and funded by taxpayers in
previous years. This commitment is part of my “Capital Completion Plan,” now in its third year
of implementation. The town completed or closed 18 capital projects over the past year, expending
$4,706,728.01, and will continue to work on projects that remain in various stages of completion
in FY25,
Evergreen Pump Station 4th Pump for $369,309
IT Learning Boards for BOE for $1,074,657
Road Paving for $325,915
Financial Software Upgrade for $157,508
Harvey Avenue Pump Station Rehab for $1,082,496
The town will continue to complete capital projects that remain in various stages of completion in
FY25. The largest of approved projects in FY24 and FY25 from the Unassigned Balance of the
General Fund were:

School & Town Security Upgrades $1,982,900
Leary Park Pickleball Complex $1,197,250
Waterford High School Tennis Courts $1,148,100
Waterford High School Turf Field $1,147,000
Old Norwich Road Paving $1,053,000
8 Goshen Road Acquisition $385,000
Oswegatchie Firehouse Project Manager $306,650
Community Center HVAC $300,000
Arnold E. Holm Memorial Park ADA Improvements $273,428
Town Hall Basketball Courts $117,808
FY2026 Capital Budget Requests
The rationale for the FY26 capital budget requests is to maintain appropriate funding for Current
Year Capital Improvements and Transfer to Capital Non-Recurring Requests, while absorbing a
staggering $1,142,379 increase in Insurance (23% increase), Fire Services for two additional full-
time firefighters (increase $326,705), Police Department (increase $134,453), Building
Maintenance (increase $124,176) and Recreation & Parks for an additional maintainer (increase
$50,248).
By presenting a capital request that includes necessary projects, I aim to ensure a responsible
general operating budget, balance budget requests, and address necessary increases in vatious
departments while completing critical capital projects and paying down Debt Service as scheduled.
This approach will ensure I present a responsible general operating budget. A town operating
budget absorbing increases in To accomplish my goal of presenting a responsible budget to
Waterford residents, while completing necessary capital projects and paying down Debt Service
as scheduled, I am increasing the Capital and Debt Service lines in FY26 by 2.86% or $296,516
for projects like:
$1M for Fleet Management
$125,000 for Revaluation
$243,335 for BOE Energy Efficiency program
$638,172 for Utility Commission projects
$25,000 for a new Tree Replacement Program
$15,000 for Fire Alarm Replacement at Quaker Hill Fire Company #2
Projected Capital Requests Outside the Budget Cycle
_ The rationale for submitting projected capital requests outside the budget cycle, in accordance with
current Board of Finance policy, is to address priority projects using the General Fund Balance.
This approach focuses on Town Infrastructure, Board of Education needs, and Waterford Beach
Park and Library improvements. Over the next five years, I will request the Board of Finance
consider using $5M from the General Fund Balance for these critical projects, ensuring a balanced
approach to funding and maintaining a healthy General Fund Balance within the Board of
Finance’s revised range.

e Town Infrastructure: $1M for road paving, $1M for the statewide radio system upgrade,
and $500,000 for copper water connectors
e Board of Education: $413,406 for Munis Implementation
e Waterford Beach Park: $350,000 for Band Shell
e Library: $175,000 for Electrical Panel Upgrade
I have considered these current priorities in the plan recommendations and directed Department
Heads to apply for all available grants through state and federal agencies. Specifically, over the
next five years, I will request the Board of Finance consider using General Fund Balance, as the
funding source for the following:
e Road Paving projects
e Town Water & Sewer projects
e Board of Education & Town Building projects
By requesting the Board of Finance consider and approve $5M in capital project spending from
GFB over the next five years, it will leave approximately $15M in the town’s General Fund
Balance - within the Board of Finance’s policy range of 13%-15% of total expenditures, This
proposed five-year capital plan reflects my recommendation for funding or not funding the
project(s) as requested and the manner of that financing. I have continued to consult with
Department Heads and have “pushed out” projects on the plan and recommendations, covering the
next five years.
Further, I have attempted to balance budget requests and “needs” knowing the town currently has
approximately $20M in reserve funds that residents have already contributed to through prior
taxation and an additional $23M already appropriated for 69 capital projects. The Town’s use of
the “General Fund Balance” is a decision made by the Board of Finance. I will continue to
recommend committing a portion of GFB for new capital projects, as needed. Based on the past
two years! feedback and support funding received capital requests outside the capital cycle, I am
again recommending the town expend General Fund Balance as approved by the Board of Finance.
The information supporting this plan is contained in a binder, which includes the CIP Guidelines,
Capital Improvement Fund balances, and all the capital improvement requests by our departments.
In addition, my recommended plan for the 5-year planning period is attached with my comments,
along with the summary of the budgets for the CNR & CYC for the FY 2026 budget. This
document and binder constitute my recommendations for the Capital Improvement Plan (CIP) for
Fiscal Years 2026-2030. The Town Charter requires the Board of Selectmen ratify these
recommendations. I anticipate reviewing these recommendations with the Board of Selectmen at
the upcoming budget meeting and hope the Board will ratify the plan. Please feel free to contact
Kim Allen, Finance Director, or myself with any questions you may have and thank you for your
continued commitment to the Town of Waterford.
Respectfully submitted,
Robert J. Brule, First Selectman